SAMSUNG ELECTRO-MECHANICS

◆ 3Q, turnover of KRW 2.2879tn, operating profit of KRW 302.5bn
 - Increase in turnover by 26%, operating profit by 215% compared to previous quarter
   • Expansion in revenue across all business units as a result of market demand recovery, profitability growth through improvements in yield and equipment efficiency
 - Increase in turnover by 3%, operating profit by 60% compared to the same quarter in the previous year
   • Expansion in high added-value product sales, including small-sized, high-capacity MLCC, mobile AP and thin plate CPU package substrates

◆ 4Q, supply expansion planned for IT and automotive MLCC, semiconductor package substrates
 
As of 3Q, Samsung Electro-Mechanics revealed on the 26th that it recorded turnover of KRW 2.2879tn and operating profit of KRW 302.5bn on its consolidated statements. Turnover increased by KRW 475.7bn (26%) compared to the previous quarter and KRW 72bn (3%) compared to the same quarter of the previous year, and its operating profit increased by KRW 206.5bn (215%) compared to the previous quarter and KRW 113.3bn (60%) compared to the same quarter of the previous year.

Samsung Electro-Mechanics explained that its earnings across all of its business units including component, module, and substrate business improved compared to the previous quarter as a result of IT and automotive market demand recovery as well as improvements in yield and equipment efficiency, and compared to the same quarter of the previous year, its operating profit increased as a result of an expansion in high added-value products, including small-sized, high-capacity MLCC and mobile AP and thin plate CPU package substrate.
 
4Q is forecasted to show strong market demand for IT and automotive MLCC and package substrates, and as a result, it plans to expand supply in high value-add MLCC and 5G antenna and mobile AP package substrates. 

[Results by quarter]                                                                         
(Unit: KRW 100mn)

□ Performance and prospect of each business unit
 
The Component Solution Unit achieved 3Q turnover of KRW 983.2bn. As a result of new model releases for its key smartphone accounts, we saw an increase in sales for small-size, high capacity, high-performing MLCC, and with a recovery in automotive market demand, we saw an increase in automotive MLCC supply, resulting in an increase by 17% compared to the previous quarter and 20% compared to the same quarter of the previous year.
In Q4, we expect turnover growth to continue with an increase in demand focusing on IT high added-value products and automotive.
 
The Module Solution Unit achieved 3Q turnover of KRW 852.7bn. With new model releases for key smartphone accounts, supply for folded-zoom and other high-performance camera modules increased, resulting in turnover increase by 41% compared to the previous quarter, but with an overall reduction in demand in the smartphone market, it decreased by 9% compared to the same quarter of the previous year.
Going forward, we plan to expand high-performance camera module sales among our flagship high-performance camera module for smartphones and diversify accounts for 5G mmWave antenna modules, which we began mass-production in Q3.
 
The Substrate Solution Unit achieved 3Q turnover of KRW 452bn, which was a 23% increase compared to the previous quarter but a 1% decrease compared to the same quarter of the previous year. As a result of mobile AP and thin plate CPU package substrate, and OLED RFPCB new model supply, turnover increased compared to the previous quarter.
In Q4, with the expansion in 5G smartphone supply, we expect turnover expansion for 5G antenna and mobile AP high added-value package substrates.
 

[Results by Business Unit]
(Unit: KRW 100mn)